From Ndubuisi Orji, Abuja
House of Representatives has approved N1. 7 trillion as subsidy for Premium Motor Spirit (PMS) also known as petrol, for 2023, saying there is no cause for alarm over the country’s borrowings
Deputy Chairman, House Committee on Finance, Saidu Abdullahi, who disclosed this, yesterday, while briefing journalists, ahead of today’s 2023 budget presentation by President Muhammadu Buhari, said the fund is expected to cover payment for January to June 2023.
Abdullahi said the Petroleum Industry Act (PIA) is expected to take off fully from next July, hence funds weres approved for the first six months in the Medium Term Expenditure Framework/Fiscal Strategy Paper (FSP) 2022-2025.
The lawmaker, while responding to questions on the country’s debt, said the nation is not doing badly in terms of its borrowings. However, he said the emphasis should be on revenue generation and prudent management of resources.
“I am an economist and for a developing economy, we are not doing too bad in terms of our borrowing. The emphasis should be on what we are generating: are we generating enough? That is where we need to lay our emphasis. We need to up our revenue generation and we also need to look at how prudent we manage our resources. That is exactly what we have commissioned ourselves to do.
“Our problem is revenue generation not even the borrowing; as a developing economy, there is need for us to borrow. If you look around, you see the deficit in infrastructure, this have to be funded and we are not generating enough.”
Meanwhile, the House has adopted the 2022-2025 MTEF/FSP, reducing the fiscal deficit for the 2023 fiscal year from N11.3 trillion to N10.563 trillion.
The MTEF/FSP report read in part: “That the daily crude oil production of 1.69mbpd, 1.83mbpd, and 1.83mbpd for 2021, 2022 and 2023 respectively, be approved; that the oil price of $73 per barrel of crude oil be approved as a result of continuous increase in the oil price in the global oil market and other peculiar situations such as continuous invasion of Ukraine by Russia as this will result in saving of N155 billion; that the exchange rate of N437.57 be sustained as contained in the MTEF/FSP document with continuous engagement between the Central Bank of Nigeria and the Federal Ministry of Finance, Budget and National Planning with a view of bridging the gap between the official market and parallel market; that the projected GDP growth rate of 3.75 per cent be approved; that the projected Inflation rate of 17.16 per cent be also approved; that the projected new borrowings of N8.437 trillion (including foreign and domestic borrowing) be approved, subject to the approval of the provision of details of the borrowing plan by the National Assembly.”
Also, the House of Representatives has commenced the probe of the Federal Government properties in the Federal Capital Territory (FCT), Abuja.
Speaker Femi Gbajabiamila, while declaring the probe open, said the investigation became imperative, owing to the large number of abandoned or under-utilised government properties across the country.
Gbajabiamila, represented by the Chairman, House Committee on Legislative Agenda, Henry Nwawuba, said the abandoned properties, if properly managed, would be of immense benefit to the country.
“Across the country, several properties belonging to the Federal Government have been abandoned, and others severely under-utilised for many years. The Federal Government possesses a large stock of abandoned properties that could become viable assets for the benefit of the Nigerian people if managed properly. The House of Representatives has since resolved to identify these assets and take legislative action to ensure they are either put to good use or transferred to provide income forthe Federal Government,” the speaker said.
Chairman of Ad-hoc Committee investigating abandoned Federal Government properties, sub-committee on FCT, Jonathan Gbefwi, in his opening remarks, said the abandoned properties, across the country, are worth hundreds of billions in naira.